Cannot save modified Word 365 document "Network or file permission error"

Using the latest Office 365 on Windows 11 with all the latest patches.
At some point in the past I have been able to edit and save Word documents in my vault. But it’s been a couple of months ago. When trying to edit a Word document with Cryptomator 1.8.0, the save fails: “There has been a network or file permission error. The network connection may be lost.” The vault is on local storage, and there are no permission errors. So, obviously something else is wrong.
Note: I tried several older versions of Cryptomator. Version 1.6.17 works fine.
Also, I have no issues using MS Word when saving to local disk or network drives that are not encrypted by Cryptomator.

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I’m having the same issue.